Abstract

This chapter provides a comparative perspective of competition policy and monetary policy. Monetary policy and competition policy are two key components of public policies needed for a market economy to function well, and indeed to exist, just as money and the market are two defining elements of such an economy. According to Mario Monti, monetary policy and competition policy compared is that they both serve in different ways the same objective, or at least they have one objective in common, even though their practitioners may not always realize it, and that is price stability. Monetary policies in most countries have been largely successful in recent periods in achieving their objectives, and in some parts of the world, maybe in Europe specifically, this has been facilitated by a number of positive supply shocks, including the setting in motion of conditions in the real economy of greater flexibility and also the creation of the single market, the tearing down of barriers, and the creation and maintenance of competitive conditions.

Mario Monti is President of Bocconi University, Milan. He is also Chairman of Bruegel (the new Brussels-based European think tank on international economics).

Since December 2005 Mr. Monti has been an international advisor to Goldman Sachs and member of the Research Advisoiy Council of the Goldman Sachs Global Markets Institute.

Mr. Monti served for ten years as member of the European Commission, in charge first of the Internal Market, Financial Services and Taxation (1995-99), and then of Competition (1999-2004).

Prior to joining the Commission, he was Professor of Economics at Bocconi and then Rector. He was President of SUERF (Societe Universitaire Europeenne de Recherches Financieres), Chairman of the Italian Treasury’s committee on the banking and financial system, member of the committee that drafted Italy’s first competition law, and member of the Roll Committee recommending independence for the Bank of England.

Mr. Monti contributes regularly to the Corriere delta Sera. He is a member of the Senior European Advisory Council of Moody’s; the Board of Directors of the Institute for International Economics in Washington, D.C.; the Steering Committee of the Bilderberg Meetings; the Trilateral Commission; and the Executive Committee of Aspen Institute Italia.

Born in Varese in 1943, he graduated from Bocconi University and did graduate work at Yale University. He holds honorary degrees from, among others, the University of Padova, Leipzig University, and the University of St. Gallen.

The Per Jacobsson Lectures

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The Per Jacobsson lectures are available on the Internet at www.perjacobs.son.org, which also contains further information on the foundation. Copies of the per Jacob.sson lectures may be acquired without charge from the Secretary. Unless otherwise indicated, the lectures were delivered in Washington, D.C.

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1

Independent and Accountable: A New Mandate for the Bank of England (London: Centre for Economic Policy Research. 1993).

2

“The Hedgehog and and the Fox in Economic Policy”. Oxford Business AlumnHecture (London: Office of fair Trading. June 2002).

Competition Policy and Monetary Policy: A Comparative Perspective